FebWk4 for the SPY is really interesting. The SPY has taken a huge beating over the trading day and has dropped $1.90+. That's a good sign, at least for me, and contingent on the performance tonight, if it drops, then we are in for some really interesting trades.
I could possibly sell a Put Spread for the SPY and look to sell a lower spread. Alternatively, I could also opt to sell a Call Spread for GLD (gold) since it is technically spiked upwards as well.
Here's the chart for the performance last night. GLD has been trending downwards for a long time. This is evident from the ichimoku indicator.
It is 11am US time, and GLD is upwards at $1.74 countering the large red candlestick from yesterday! (diagram above) The trend is still downwards, there is more downside to GLD, and in my opinion, it is still going down.
So I decided to place a trade for a Call Spread on GLD $155/156 for $0.05 premium. I hope I am right and I know time decay will work in my favor. Otherwise, it is going to be a very sad sad week for me. Anyway, let's keep our fingers crossed. :)
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